If your local meteorologist says a Category 3 hurricane is coming tomorrow, are you prepared? You may have shutters on your windows and a stockpile of canned food and bottled water, but what about your financial records? The IRS identified several steps that individuals and businesses should take to protect themselves against losses from natural disasters.
- Create an electronic set of backup records (e.g. bank statements, tax returns, insurance policies).
- Document valuables with photographs or videos of home contents and store with a friend or family member who lives outside the area.
- Update personal and company emergency plans.
- Check on fiduciary bonds if you are an employer who uses payroll service providers; a bond could offer protection if the provider defaults.
IRS specialists trained to handle disaster-related issues can be reached by calling 1-866-562-5227, and copies of previously filed tax returns can be requested by filing Form 4506 (Request for Copy of Tax Return).
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Scott F. Berger is a tax and accounting services principal at Kaufman, Rossin’s Boca Raton office. Kaufman, Rossin & Co. is one of the top CPA firms in the country. He can be reached at sberger@kaufmanrossin.com.